Technology

3 Commercial Lines Technology Trends to Look for in 2022

Published: January 25, 2022

APIs, blockchains, and cybersecurity, oh my! While none of these general concepts are new, implications and use cases are continuously emerging for the insurance world. The Agents Council for Technology (ACT) Executive Director Ron Berg and ACT Program Manager Ginny Winkworth recently joined me to discuss key technology trend takeaways from the latest ACT Summit.

APIs: Connecting the Industry

An API — or application programming interface — is the connection between multiple sets of services or transactions. The primary goal of the APIs for the insurance industry is to create and provide services where your industry partners are.

What Is the Impact?

APIs can help build microservices and be a support system for services in the industry. We’re seeing APIs cross over from Personal Lines to the world of Commercial Lines. APIs have started to be used in Commercial Lines for billing, quote and bind, and other services along the distribution lifecycle. It’s expected that this will continue to expand as new technology continues to emerge.

“Commercial Lines is a hotbed of innovation right now.” —Ron Berg, Executive Director, ACT

Implementation Tips

API implementation requires planning and goal setting. Below are some important considerations to think about before deciding to use an API.

Have a use case established before approaching your industry partners. Whether it is for billing, quoting and binding, or another process, think through the services you want to connect with an API and have a use case example in mind.
Define what problem you are trying to solve with the API. Contemplate the customer experience you want to create and how the API will help.
Ensure the API is multi-purpose. You want an API that will help with multiple stages in the lifecycle, from sales to service.

While APIs have lived more in the insurer world within the sales funnel, industry professionals are now realizing that servicing APIs are equally important for the industry.

Blockchains: Transparent Transactions

Blockchain is a decentralized way to record or organize transactions in a database or ledger. This allows multiple parties to share data securely. Since each transaction is recorded in one block of data, the transactions are irreversible and locked together – becoming a chain.

“Blockchains embrace transparency so all who have permission to see that transaction are able to see details from end to end.” —Ginny Winkworth, Program Manager, ACT

What Blockchain Is Not

Blockchain is not just Bitcoin, although it is the technology that enables Bitcoin. It does not eliminate intermediaries or the need for a banking system – it is supplemental. Blockchain is also not one single entity. There are thousands of them out there.